Gold’s bounce ahead of the June low at $1670 is viewed as corrective. XAU/USD will need to regain $1765 to alleviate downside pressure, as reported by Commerzbank.
See – Gold Price Analysis: XAU/USD to see selling pressure once more beyond the quarter-end – OCBC
Key quotes
“The market is bouncing just ahead of the $1670 June low and the $1675 2019-2021 uptrend. However, rallies are indicated to be corrective only AND initial resistance is offered by the $1760/65 band, which is the May high and November low blocks the way higher.”
“A close above $1760/65 is needed in order to alleviate downside pressure and signal a deeper recovery to the $1800-$1820 band, but various Elliott wave counts suggest that this should be it on the topside.
“Above the $1800-$1820 band lies $1861.35, the 200-day ma and $1906, the 21st December high, and the top of the channel at $1918. This guards the November and September highs at $1965.84/$1973.8 and the 78.6% retracement at 2006.”
“Below $1670 would imply ongoing weakness to the $1584/78.6% retracement.”
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